Financial Contrast: ECD Automotive Design (NASDAQ:ECDA) versus Lion Electric (NYSE:LEV)

Lion Electric (NYSE:LEV) and ECD Automotive Design (NASDAQ:ECDA) are both small-cap auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Lion Electric and ECD Automotive Design, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lion Electric	0	7	1	1	2.33
ECD Automotive Design	0	0	1	0	3.00

Lion Electric presently has a consensus target price of $1.46, suggesting a potential upside of 485.71%. ECD Automotive Design has a consensus target price of $9.00, suggesting a potential upside of 900.00%. Given ECD Automotive Design’s stronger consensus rating and higher probable upside, analysts clearly believe ECD Automotive Design is more favorable than Lion Electric.

Institutional & Insider Ownership

52.7% of Lion Electric shares are held by institutional investors. Comparatively, 94.8% of ECD Automotive Design shares are held by institutional investors. 16.6% of Lion Electric shares are held by insiders. Comparatively, 77.3% of ECD Automotive Design shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Lion Electric and ECD Automotive Design’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lion Electric	-74.35%	-32.42%	-12.99%
ECD Automotive Design	N/A	N/A	N/A

Earnings and Valuation

This table compares Lion Electric and ECD Automotive Design”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lion Electric	$253.50 million	0.22	-$103.77 million	($0.59)	-0.42
ECD Automotive Design	$15.12 million	2.06	-$1.60 million	N/A	N/A

ECD Automotive Design has lower revenue, but higher earnings than Lion Electric.

Volatility & Risk

Lion Electric has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, ECD Automotive Design has a beta of -1.49, suggesting that its share price is 249% less volatile than the S&P 500.

Summary

ECD Automotive Design beats Lion Electric on 9 of the 12 factors compared between the two stocks.

About Lion Electric

The Lion Electric Company designs, develops, manufactures, and distributes purpose-built all-electric medium and heavy-duty urban vehicles in North America. The company's products include battery systems, chassis, bus bodies, and truck cabins. It distributes truck and bus parts, as well as accessories. The company was incorporated in 2008 and is based in Saint-Jérôme, Canada.

About ECD Automotive Design

ECD Automotive Design, Inc. engages in the production and sale of customized Land Rover vehicles in the United States. The company also provides repair or upgrade services and extended warranties to customers. It restores various vehicles, including Land Rovers Defenders, Land Rover Series IIA and III, the Range Rover Classic, and Jaguar E-Type. The company was founded in 2013 and is based in Kissimmee, Florida.